Discuss the type of questions about future cash flows that investors and creditors attempt to answer in so far as it relates to the information contained in the income statement
Discuss the type of questions about future cash flows that investors and creditors attempt to answer in so far as it relates to the information contained in the income statement
Discuss the type of questions about future cash flows that investors and creditors attempt to answer in so far as it relates to the information contained in the income statement
Discuss the type of questions about future cash flows that investors and creditors attempt to answer in so far as it relates to the information contained in the income statement
Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
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